our Work Mobila Firefox tps You are the new accounting manager at the Barry Transport Company Your CFO has asked you to provide input on the company's income tax position based on the following 1. Pretax accounting income was $42 million and taxable income was $8 million for the year ended December 31, 2016 2. The difference was due to three items a Tax depreciation exceeds book depreciation by $30 million in 2016 for the business complex acquired that year. This amount is scheduled to be $50 million in 2017 and to reverse as ($40 million) and ($40 million) in 2018, and 2019, respectively b. Insurance of $10 million was paid in 2016 for 2017 coverage c. A $6 million loss contingency was accrued in 2016, to be paid in 2018 3 No temporary differences existed at the beginning of 2016 4 The tax rate is 40% Required 1. Determine the amounts necessary to record income taxes for 2016 and prepare the appropriate journal entry (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Answer is complete but not entirely correct No Event General Journal Debit Credit Income tax expense 3.0 . Income tax payable 32 0 32.0 3.0 Deferred tax liability Income tax payable 2. How should the deferred tax amounts be classified in a classified balance sheet? (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5)) 3 Answer is complete but not entirely correct Deferred Tax Amount ($ in millions) Classification Amount 3$ 320 3.0 Noncurrent asset Current liabilities